BREAKING -- news release from U.S. Senator Jim Webb (D-Va.): "Webb has finished up a two-day visit to Myanmar [Burma] by obtaining the release of American prisoner John Yettaw and meeting with Nobel Peace Prize Laureate Aung San Suu Kyi. Webb, who on Saturday became the first American leader ever to meet with Myanmar President Than Shwe, raised both issues during his meeting. He also requested that the country’s leadership release Suu Kyi from her eighteen month sentence of house arrest following her recent conviction for violating the terms of her house arrest. 'I am grateful to the Myanmar government for honoring these requests,' noted Webb. 'It is my hope that we can take advantage of these gestures as a way to begin laying a foundation of goodwill and confidence-building in the future.' ... Yettaw will be officially deported from Myanmar on Sunday morning. Senator Webb will bring him out of the country on a military aircraft that is returning to Bangkok on Sunday afternoon."

WashPost's Colum Lynch: Webb's "diplomatic mission ... is likely to prove a test of U.S. efforts to engage recalcitrant foreign governments. ... [He is] the highest-ranking U.S. official to visit to Burma in a decade ... [It] comes as the Obama administration calibrates its policy toward the military junta that rules the country, which came under tough economic sanctions during the Bush administration. The Obama administration has shown a willingness to engage with Burma and other adversaries. Webb's trip could highlight the benefits of such engagement, at least in Burma, U.S. officials said. But engagement also comes with risks. Earlier this month, the administration's decision to deploy former president Bill Clinton to North Korea generated a degree of controversy, even as the trip helped secure the release of two Americans. Burmese opposition groups have already objected to Webb's trip on the grounds that it rewards the government for stifling political dissent. Administration officials insisted that Webb is not acting on behalf of the United States. But a State Department spokesman, P.J. Crowley, said that officials had briefed Webb before his departure. And U.S. Embassy officials based in Rangoon plan to accompany the senator to the remote jungle capital of Naypyidaw ... Webb , who first traveled to Burma in 2001 as a private citizen at the invitation of an American businessman, has been a staunch critic of the U.S. sanctions of the country, also known as Myanmar."

EXCLUSIVE -- DRIVING THE DAY: At President Obama’s town hall at 6:25 p.m. ET in Grand Junction, Colo., he’ll focus on Americans who are forced to pay exorbitant medical costs even though they have health insurance. A new release from HHS points to studies showing that 72 million, or 41 percent, of non-elderly adults have accumulated medical debt or had difficulty paying medical bills in 2005-07. 61 percent of those with difficulty had insurance. A White House aide with tired thumbs e-mails: “Inadequate coverage even for those with insurance – in the form of high deductibles, high co-payments, and benefit restrictions – plays a key role in making health care unaffordable for millions of families. Health insurance reform legislation would limit the amount of money people have to pay out of pocket and would prevent insurance companies from imposing annual or lifetime caps.”

RESPONSE from Don Stewart, communications director for Senator Minority Leader Mitch McConnell (R-Ky.): "Is it any wonder they’re having a hard time convincing people that a government bureaucracy should run their health care when their definition of a ‘new’ report is based on study that was released a year ago and that focused on 2005-2007? Only in a government-run program can four-year-old data be ‘new.’"

KNOLLER NUGGET: Today's town hall will be the 20th of Obama's presidency and his 10th on health care.

N.Y. Times A9, “Drug Firms cost Lobbyist His Position,” by David D. Kirkpatrick: “Dick Armey, the former House Republican leader, has quit his job with the lobbying firm DLA Piper amid complaints from its drug company clients about his work opposing President Obama’s health care overhaul. His departure is the latest example of the confusing entanglements arising from the health care debate. … One of DLA Piper’s biggest clients is Medicines Company, which paid DLA Piper $240,000 in lobbying fees in the second quarter. Another drug maker, Sinofi Pasteur, paid the firm $30,000 during the same period, according to its latest disclosure forms.”

AU REVOIR TO POLITICO’S FIRST CLASS OF INTERNS, all of whom rocked: Melanie Mason is headed back to UCal Berkeley for her final year in j-grad school. Kathryn McGarr is becoming associate blogs editor at HuffPo. Zack Abrahamson, who divined Vandy’s favorite font, is headed to his senior year at Yale. Abby Phillip will finish up at Harvard. Also thanks to Beth Frerking, for choosing wisely.

TOP TALKER -- “Hot Fox: Fox News on pace for best year ever,” by AP Television Writer David Bauder: “Fox News Channel's Glenn … is a hero to many people who are not buying the Age of Obama, and so is Fox. The network was already on pace for its best ratings year even before the health care debate sent viewership jumping during a traditionally slow month for news. How emboldened is Fox? After President Barack Obama's press secretary Robert Gibbs warned against ‘cable news’ derailing health care plans, Bill O'Reilly assumed he was referring to Fox and seemed ready for a fight. ‘Who's that going to help?’ O'Reilly said. ‘Us, that's who. Our ratings are already soaring because we don't denigrate the protesters, the way a lot of other TV news organizations do. They're dying. We're on fire.’ …Fox's viewership is up 11 percent over last year, according to Nielsen Media Research. CNN and MSNBC, which benefited from interest in the campaign last year, are down. O'Reilly, who already had cable news' most popular show, Beck and Sean Hannity lead the way. …

“Fox aired comments from 63 opponents of health care reform on Monday and Tuesday, and only 10 supporters, the liberal media watchdog Media Matters for America said. Fox also cut away from Obama's New Hampshire town hall after only two questions, saying it would return if it got contentious. It didn't. …The addition of Beck and dropping of Hannity's liberal co-host Alan Colmes has increased anti-Obama time on Fox. To a degree, MSNBC's left turn provides Fox with cover; opinionated cable news is that much more accepted. Even if outnumbered, opposing voices are more likely heard in Fox's prime-time than on MSNBC's. Fox has also largely ignored the more extreme Obama opponents who question whether the president was born in the United States.”

NEWSWEEK’s cover is, “IN SEARCH OF ALIENS: NASA IS OUT THERE LOOKING."

EDITOR JON MEACHAM writes that “Hitler and health care don't mix … Given the enormity of the evil perpetrated by Nazi Germany, it seems reasonable to suggest a moratorium on the deployment of Third Reich imagery and language in domestic political conflicts that, while important, fall immeasurably short of Hitler's territorial ambitions and his Final Solution. … The further we move in time from the events of the Second World War, the more remote it all seems, as though the rise of National Socialism, the persistence of American isolationism, the cynicism of the Soviet Union, and the appeasement chic of the British upper classes are relics of an ancient era. But these forces are not antique. They are permanent. It could all happen again tomorrow--all of it. … The summer of 2009 has not been our finest hour on this front.”

PUNDIT PREP -- AP, “Obama reprises campaign style in health debate,” by Liz Sidoti in Big Sky, Mont.: “Fighting for control of the health care debate, President Barack Obama is using political tactics and rhetorical devices honed in his White House campaign to regain the upper hand over increasingly vocal critics. … Familiar tools from the Obama candidacy are being used in the struggle, adapted to his office: among them the town hall meetings with his sleeves rolled up, a quick-response Web site to douse critics' claims, chain e-mails and a populist pitch against the entrenched powers in Washington.

Q. I hear you’ve climbed Mount Kilimanjaro. A. It was fabulous. We took about three and a half days to get up and a day and a half or so to get down.

Q. Is there anything you’d like to say to Gov. Ed Rendell of Pennsylvania, who said you would be perfect for your current job because you have “no life.” A. It takes one to know one. …

Q. Are you seeing anybody now? A. Yes, my staff.

WASHPOST OMBUDSMAN, Andrew Alexander, “Ignoring the Rules on Anonymous Sources … Post policies say editors have an ‘obligation’ to know the identity of a reporter's unnamed sources so they can ‘jointly assess’ whether they should be used. ‘The source of anything that appears in the paper will be known to at least one editor,’ the stylebook says. But of nearly 30 Post reporters questioned recently about their use of anonymous sources, roughly two-thirds said editors never or rarely ask to know the identity. … Post policies say readers should be told as much as possible about the quality of a confidential source (‘with first-hand knowledge of the case,’ for instance). … Veteran staffers say that in recent years The Post has tightened up on the use of anonymous sources. As a reader since 1976, that's my impression. Still, they're ubiquitous. Post stories containing the phrase ‘spoke on condition of anonymity’ have appeared about 160 times this year. … The Post's sourcing rules are fine. The problem is compliance.” http://bit.ly/wMyax

PATRICK GAVIN SPOTTINGS: Pete Seat at Clyde's (Chinatown) last night. Ask him about his chauffeured rides to and from Shelbyville, Indiana. … Reason's Nick Gillespie at house-warming party for Politico's Pia Catton. Ask him what the magazine's URL was before they scored the money Reason.com.

**A message from AFSCME’s Highway 2 Healthcare Tour: AFSCME Rocks and Rolls for Reform during August Recess. For a tour schedule, go to www.Highway2Healthcare.com. **

THE FIRST FAMILY’S TRIP TO MONTANA:

--POLITICO’S Carol E. Lee: “As the press bus was driving in after the town hall in a steady rain along a winding mountainous highway along the Gallatin River, the driver shouted out, "there they are!" And there they apparently were: FLOTUS, the first daughters and a string of Secret Service agents floating on large rafts down the river. Obama said during his town hall that the first lady and his daughters were going white water rafting. While his wife and daughters were floating down the river, POTUS embarked on his fly fishing expedition, according to a pool report. Robert Gibbs apparently caught a fish during a post-town hall outdoorsy adventure of some WH staff. POTUS didn't catch any fish. But he got a couple of nibbles. POTUS rolled into the Big Sky Resort past the town center where 20-30 people --that's a crowd here -- stood by the road snapping pictures and giving thumbs up. On the main road to the resort, a few people held up an orange banner: ALOHA.”

--AP’s aforementioned LIZ SIDOTI leads The Philadelphia Inquirer, which headlines her dispatch from Belgrade, Mont., “Obama: Media overplay protests”: “Trying to lower the temperature of the health care fight, President Barack Obama on Friday denounced news media emphasis on angry protesters at town hall meetings. Obama ventured west for the latest of his own town hall-style events, fielding polite but occasionally tough questions — one man declaring the president couldn't pay for his plan without raising taxes. Tieless and rolling up his sleeves in campaign mode, Obama pitched his overhaul plan to a crowd in an airport hangar near Bozeman.

--HUFFINGTON POST banner, “Friendly Town Halls May Put Obama In A Bind.” Links to WashPost’s Michael D. Shear, who leads the paper from Belgrade: “[T]he president, whose popularity and powers of persuasion may well make him the reform effort's most effective spokesman, encountered the same difficulty he faced at a town hall meeting this week in New Hampshire: For the most part, the critics were nowhere to be seen. The crowd of about 1,300 that gathered in an airplane hangar here Friday was overwhelmingly friendly and supportive, applauding repeatedly. Only two men put the president on the spot -- something White House officials had indicated they were hoping would happen more often. …

“Earlier in the week, senior Obama adviser David Axelrod said White House officials were hoping to have Obama answering questions -- even tough questions -- because they have confidence in his ability to offer satisfying explanations the American public will believe. ‘It's very important,’ Axelrod said. ‘There is a whole lot of misinformation out there. The best way to deal with it is directly.’ The composition of the crowds at the town hall events is a delicate matter for the White House. Having enthusiastic, friendly crowds that demonstrate support for the president's agenda is a positive thing. And Obama's allies are eager to show the contrast between his supporters and the angriest opponents of his plans. But the president clearly needs to have a foil against which to offer his corrections to what he considers mischaracterizations of the health-reform plans. John Weaver, the political strategist who helped John McCain organize hundreds of often-confrontational town hall meetings, said Obama needs to put himself in tougher venues where he can confront his critics.”

THE CLINTONS:

--AFP, “Clinton sets new 'tough love' tone on Africa,” by Shaun Tandon: “Hillary Clinton has set a new tone in US relations with Africa on a whirlwind seven-nation trip, sometimes ruffling feathers with a tough love message that Africans must tackle their own problems. On her longest trip yet as secretary of state, Clinton crisscrossed the continent for 11 days from an AIDS clinic in rural South Africa to the war zone of Democratic Republic of Congo to a roundtable with Nigerian faith leaders. To the diverse audiences, Clinton delivered a consistent message -- the fate of Africa is up to the Africans and that the United States, while ready to work with them, has no ‘magic wand’ to solve endemic problems. She was taking on the road a message delivered by President Barack Obama on a visit last month in Ghana, where the first African-American US leader urged Africans to stand up and take charge of their future.

“Clinton, who ended her trip Friday here in the small Atlantic archipelago of Cape Verde, tailored the theme to each country -- urging Kenya's rival leaders to reconcile and warning Nigeria that corruption was threatening the government's very legitimacy. ‘The Obama administration both in the president's speech (in Ghana) and in my visit, have given a message of tough love,’ she said during a press conference Friday with Cape Verde's Prime Minister Jose Maria Neves. ‘We are not sugarcoating the problems, we are not shying away from them, our emphasis is to help to channel the hopes and aspirations of the people of Africa, in a way that changes the direction of their countries.’ While Clinton faced little outright hostility on her trip -- in Liberia, she was greeted by hundreds of cheering women calling her "our iron lady" -- she faced some tough questioning.”

--BILL RETURNS -- Boston Globe p.1, “Clinton emerges from the sidelines: Ex-president has unique role to play,” by Susan Milligan in New York: “The Big Dog is back. Long quiet after the bruising presidential campaign that deprived his wife of the Democratic nomination and damaged his own relationship with some members of the party, Bill Clinton has returned to the public spotlight. And his resurgence is not limited to his high-profile diplomatic mission last week to secure the release of two journalists from North Korea. In subsequent days, he joined drug company executives to announce a deal to provide lower-cost AIDS and tuberculosis drugs to patients in developing countries. He appeared in Las Vegas with two Obama administration Cabinet secretaries, making the case for clean energy policy. Then, on Thursday night, Clinton headed to Pittsburgh to talk to liberal bloggers and defend Obama against ‘crazy’ accusations about the Democratic health care proposal.

“For the first time since Barack Obama’s election, Clinton is prominently working for a president with whom he had a testy relationship during the campaign. ‘I just do what I’m asked to do,’ Clinton told the Globe in a brief interview as he navigated his way out of the throng of people seeking to shake his hand at Harlem’s Studio Museum this week. ‘I have no expectations. No former president should. We should - all of us who have had that job - should be available to serve if there’s something we can do.’ Former presidents have tended to fall into two categories - those who make speeches for big checks, and those who get involved in charity work or public policy advocacy, as Jimmy Carter has done. But Clinton occupies his own, unique category: a former president who does both - and also loves being in the spotlight, enjoys widespread popularity overseas, and whose wife just happens to be secretary of state. …

“Sandy Berger, who served as Clinton’s national security adviser, said the former president’s ‘enormous stature and gravitas and experience’ were too valuable to be unused. ‘I think he’s fashioning a postpresidency that is quite extraordinary and might turn out to be as much of a legacy as his presidency,’’ Berger said. … Harlem residents say Clinton has been a consistent presence in their community, even after the difficult 2008 election season. On Wednesday, a hoarse but beaming Clinton was back in his office, promoting the neighborhood’s first-ever Zagat guide to restaurants, shops, and nightlife. … ‘This is my life now,’ Clinton said, gesturing to the Harlem crowd clamoring to get near him. ‘And I love it.’” http://bit.ly/faRGo

2012 -- SOMEONE GAVE T-PAW SOME WHEATIES -- “Pawlenty: GOP surge if health plan fails,” by POLITICO’s Andy Barr in Chicago: “Minnesota GOP Gov. Tim Pawlenty took an aggressive line against President Barack Obama’s proposed health care overhaul Friday and insisted that a rejection of the Democratic plan could usher in a Republican resurgence. ‘It appears that President Obama is making great progress on climate change, he is changing the political climate in the country back to Republican,’ Pawlenty said during a speech to the second annual GOPAC conference in Chicago. ‘He went around the country last fall promising “change we can believe in,” but now we see it’s about changing what we believe in,’ said Pawlenty, an anticipated 2012 Republican presidential contender. ‘We need to be calling out the flaws and misguided decisions of the Democrats in Congress and the Obama administration.’ Pawlenty characterized Obama as an ‘extreme left liberal’ …

“The Minnesota Republican threw a number of red-meat lines to the audience of GOP state legislators, including a slam directed at MSNBC ‘Hardball’ host Chris Matthews. ‘The only thing growing faster than the federal deficit and debt is Chris Matthews’ man crush on Obama,’ Pawlenty joked. Pawlenty, who became vice chairman of the Republican Governors Association following South Carolina Gov. Mark Sanford’s resignation as the group’s chair, projected GOP wins this fall in the Virginia and New Jersey gubernatorial races.”

MEDIAWATCH -- Washington Times Executive Editor John Solomon gets a “Correction” from The Other Times: “An article on Friday about the origins of the false rumor that President Obama’s health care proposals would create government-sponsored panels to decide which patients were worthy of living referred imprecisely to the stance of The Washington Times, which shortly after the election published an editorial comparing some positions of the incoming administration to the euthanasia policies of the Third Reich. In describing the newspaper as ‘an outlet decidedly opposed to Mr. Obama,’ the article was referring to its opinion pages, not to its news pages.”

BUSINESS BURST -- L.A. Times lead story, “Consumers aren’t ready to buy in yet: Shrinking incomes drive an unexpected drop in confidence, casting doubt on the strength of a recovery … After millions of layoffs and severe reductions in their personal wealth, U.S. consumers are showing little inclination to open up their wallets. That has heightened worries about the strength and sustainability of an expected recovery.”

--DRUDGE REPORT banner, “BIG BANK DOWN,” linking to AP’s Marcy Gordon: “Regulators on Friday shut down Colonial BancGroup Inc., a big lender in real estate development that marked the biggest U.S. bank failure this year, and a small bank in Pennsylvania. The closures boosted to 74 the number of federally insured banks that have failed in 2009. The Federal Deposit Insurance Corp. was appointed receiver of Montgomery, Ala.-based Colonial, with about $25 billion in assets, and Dwelling House Savings and Loan Association, located in Pittsburgh.”

SPORTS BLINK -- Philly Inquirer, top of front page, “'Lot of Soul-Searching': Why Eagles decided to give Vick a second chance,” by Bob Brookover: “When Michael Vick followed Eagles coach Andy Reid into the auditorium at the NovaCare Complex precisely at 11 a.m. yesterday, there were so many things that so many people wanted to know about the quarterback who had spent the last two seasons wearing prison No. 33765-183 rather than the No. 7 jersey he'll pull on today at practice as the newest member of the Philadelphia Eagles. Flanked by Reid on his right and former NFL coach Tony Dungy on his left, Vick calmly explained where he hopes his life goes from here while expressing his remorse for running the dogfighting ring that landed him a 23-month jail sentence, most of which was served at a federal prison in Leavenworth, Kan. ‘I know, as we all know, in the past I have made some mistakes,’ Vick told an overflowing media audience. ‘I have done some terrible things. I made a horrible mistake. And now I want to be part of the solution and not the problem.’

"When Vick, Reid and Dungy left the room, Jeffrey Lurie entered and went into a 13-minute monologue about how he wrestled with the idea before agreeing to the most controversial player signing of his tenure as Eagles owner. … ‘I want to say a special thanks to Donovan McNabb,’ Vick said. ‘He's a great friend . . . for reaching out to Andy and giving Andy time to think about the decision that he made. I know now that playing in the NFL is a privilege and not a right and I want to do whatever is necessary to be the best ambassador for the NFL and the community.’ His words seemed sincere, but they didn't stop the cascade of difficult questions that followed once he was done with his opening statement. … I think everybody deserves a second chance. … I think as long as you are willing to come back and do it the right way and do the right things and you're committed, then I think you deserve it. But you only get one shot at a second chance and I'm conscious of that.’”

DESSERT -- “MAD MEN” RETURNS at 10 p.m. SUNDAY FOR A THIRD SEASON ON AMC -- AP’s Solvej Schou looks at the FASHION/RETAIL angle: “From runways to mass retail and the virtual world, the show set in early '60s New York, which premieres its third season Sunday, has put pencil skirts and skinny ties back in full rotation. ‘I always describe “Mad Men” as the American, iconic style, because I think those silhouettes are still viable today,’ said the show's costume designer, Janie Bryant … The Cleveland, Tenn., native, who has been designing professionally for 18 years and with ‘Mad Men’ since its second episode, said she's seen the show's influence everywhere, from collections for Old Navy and Liz Claiborne to couture's Christian Dior, Oscar de la Renta and Valentino. Banana Republic even paired up with AMC to market the show in more than 400 stores throughout the United States and Canada for three weeks leading up to this season's premiere, and launched a casting call contest for a walk-on part. A collection based on the show includes a smooth, gray pencil skirt and printed tie blouse modeled after Christina Hendricks' curvy, head-turning head secretary Joan Halloway, and a slim, belted sheath, modeled after secretary-turned-copywriter Peggy Olson (Elisabeth Moss). A plaid fedora, striped tie and dark suit is based on the show's main character Don Draper — the creative director of advertising agency Sterling Cooper — played by Jon Hamm. …

“Inspiration for the show's costumes, Bryant said, comes from thorough research, from old photographs to memories of her mother and grandmother being well-dressed hostesses. And Bryant borrows a few tricks from the classic Valentino clothes that she so admires. … Foundation garments such as bras, girdles, stockings and slips are worn by the female characters. This season, with the show pushed forward into 1963 and Don's picture-perfect housewife Betty pregnant, played by January Jones, the characters' costumes are starting to change. While hemlines stay the same, Betty's full, ladylike hostess skirts start to slim down. ‘Her silhouette in some of the episodes is more sleek, more grown-up in a way, reflecting her experiences,’ said Bryant, adding that polyester blends and non-wrinkle fabrics come into play, plus flocked satin.

“Peggy starts dressing a bit more seriously, in more skirt suits, but still in her standard plaids, per her new professional status at Sterling Cooper. ‘I always maintain that modest schoolgirl theme for her. She's gotten a raise, she has her office,’ Bryant said. ‘We'll see some evolutions in her costumes. She has her promotion, she's with those guys.’ Joan, known for a snug red dress, is described cheekily by Bryant as ‘a tube of lipstick from the front and a heart from the back,’ and continues to flaunt her hourglass shape. … According to hair department head Lucia Mace, who snagged an Emmy in hairstyling last year for the show, the men don't wear longer hair or sideburns yet, but use softer products and less gel. Don's wardrobe is darker than before, said Bryant, a sign of his tortured disposition, but otherwise the palette is sunny and bright, matching the trend of the day.”

**The AFSCME Highway to Health Care Reform RV will travel through key states mobilizing the public to contact their members of Congress to demand real reform -- reform that guarantees quality, affordable health care for all. The Highway to Health Care Reform tour is part of the union’s unprecedented $6 million Make America Happen campaign, which includes ads, canvassing, phone calls, online activities and the deployment of dozens of campaign field organizers to key states in support of President Obama’s efforts to win real health care reform this year. Check out the tour schedule at www.Highway2Healthcare.com.**

****** A message from Morgan Stanley: Interested in the long-term investment opportunities that might arise from disruption? Morgan Stanley Investment Management Disruptive Change Researcher Stan Delaney shares five emerging trends that investors should watch over the next decade. "Disruptive change is so pervasive that our team looks at all of our investments through a disruptive lens," says DeLaney "Our disruptive analysis effort is really about supporting the Growth Team's strategy of long-term investing, finding companies with a sustainable competitive advantage, and making sure that we aren't holding companies that could be left behind." These trends—spanning autonomous driving, machine learning, augmented reality and more—could have far-reaching implications for economies, industries and social behavior. Read more. ******

About The Author

Mike Allen is the chief White House correspondent for POLITICO. He comes to us from Time magazine where he was their White House correspondent. Prior to that, Allen spent six years at The Washington Post, where he covered President Bush's first term, Capitol Hill, campaign finance, and the Bush, Gore and Bradley campaigns of 2000. Before turning to national politics, he covered schools and local governments in rural counties outside Fredericksburg, Va., for The Free Lance-Star, then wrote about Doug Wilder, Oliver North, Chuck Robb and the Bobbitts for the Richmond Times-Dispatch, where he nurtured police sources on overnight ride-alongs through housing projects. Allen also covered Mayor Giuliani, the Connecticut statehouse and the wacky rich of Greenwich for The New York Times. Before moving to The Times, he did stints in the Richmond and Alexandria bureaus of The Washington Post. Allen grew up in Orange County, Calif., and has a B.A. from Washington and Lee University, where he majored in politics and journalism.